Yongin City's 'Industrial Complex Projects' Progressing Rapidly Thanks to Semiconductor Mega Cluster Effect

[Suwon Ilbo=Reporter Choi Ki-ho] Yongin Special City announced on the 25th that, thanks to the 'semiconductor mega cluster effect,' projects at related general industrial complexes are progressing rapidly, with 98% of the industrial facility sites at the 2nd Yongin Techno Valley General Industrial Complex being developed in Idong-eup, Cheoin-gu, now sold.

A world-class semiconductor mega cluster is forming in Yongin, centered on three national high-tech strategic industry specialized complexes in which Samsung Electronics and SK Hynix are investing a combined 502 trillion won. Among these, construction of the first Fab at the Yongin Semiconductor Cluster (SK Hynix investing 122 trillion won) in Wonsam-myeon, Cheoin-gu, began on February 24, and the compensation procedures for the advanced system semiconductor national industrial complex in Idong and Namsa-eup (Samsung Electronics investing 360 trillion won) have also begun. As these projects take shape, domestic and international semiconductor materials, parts, and equipment companies are flocking to Yongin one after another.

According to the city, the 2nd Yongin Techno Valley General Industrial Complex, being developed near the advanced system semiconductor national industrial complex, currently shows a construction progress rate of about 15%. Of the 46 lots for sale, including industrial facility sites, 45 lots have been sold, amounting to 179,164㎡ out of 192,124㎡ on an area basis.

Numerous semiconductor companies have signed sale contracts here, including Tokyo Electron Korea, a world-class semiconductor equipment manufacturer, which purchased 53,292㎡ (16,120 pyeong) to establish a new workplace.

The city also stated that nearby existing general industrial complexes, whose projects had been delayed for a long time, are now gaining momentum thanks to the semiconductor mega cluster effect.

The Wonsam General Industrial Complex and Wonsam-2 General Industrial Complex, being developed near the Yongin Semiconductor Cluster, had been delayed for a long time due to initial plans to attract companies in various industries, including plastics manufacturing. However, as semiconductor companies have announced entry plans one after another, the projects are now progressing rapidly.

These industrial complexes, which chemical industry companies including GS Energy had initially considered moving into, have been replaced by semiconductor companies such as Tokyo Electron Korea, STI Co., Ltd., and Nano-X Korea. Tokyo Electron Korea plans to break ground in September on an R&D center (TEL Technology Center Korea-Y) comprising nine buildings with a total floor area of 61,788㎡ on a 45,069㎡ site within the Wonsam General Industrial Complex. STI partially completed and began operating its second plant here in 2020.

The Jigok General Industrial Complex in Jigok-dong, Giheung-gu, where the Korean subsidiary of Lam Research, a world-class semiconductor equipment manufacturer, and Search&Delve Co., Ltd. have moved in, has not only completed its infrastructure but has also handed over facilities to resident companies, and is expected to be completed soon.

The Jeil General Industrial Complex being developed in Yangji-myeon is also more than 80% complete in its construction, centered on semiconductor companies such as TES Co., Ltd., PTC Co., Ltd., and SNC Solution Co., Ltd.

As projects at general industrial complexes near the advanced system semiconductor national industrial complex and the Yongin Semiconductor Cluster are progressing rapidly, the city is also reviewing plans to expand the supply of industrial sites to foster a smooth semiconductor ecosystem.

The city is undergoing the administrative procedures necessary for permits so that it can apply for industrial complex plan approval from the Ministry of Land, Infrastructure and Transport within this year for the Yongin Semiconductor Cooperation General Industrial Complex, which is being pursued as a follow-up project to the 2nd Yongin Techno Valley.

This industrial complex, to be developed in the vicinity of 578-1 Jukneung-ri, Wonsam-myeon, spans 260,378㎡. It received a volume supply from Gyeonggi Province's Industrial Complex Location Review Committee in July 2023, and applied for industrial complex designation planning to the Ministry of Land, Infrastructure and Transport this past July. Although the developer set a completion target of 2030 for this industrial complex, the city's policy is to move up the groundbreaking and completion dates in consideration of demand from semiconductor companies.

This is based on the judgment that, with the groundbreaking of the first Fab at the Yongin Semiconductor Cluster in Wonsam-myeon on February 24 and the ongoing compensation procedures for the advanced system semiconductor national industrial complex in Idong and Namsa-eup, numerous materials, parts, and equipment companies are entering Yongin one after another, where the world's largest semiconductor ecosystem is forming.

Among the world's top five semiconductor equipment manufacturers, Lam Research Korea has already completed and is operating its Yongin campus within the Jigok General Industrial Complex, while Tokyo Electron Korea has secured sites in the Wonsam General Industrial Complex and the 2nd Yongin Techno Valley and has begun its R&D center construction project. ASML, the largest semiconductor equipment manufacturer, has confirmed its entry into the Yongin Semiconductor Cluster cooperation complex.

In addition, about 90 leading domestic semiconductor materials, parts, and equipment companies—including SEMES Co., Ltd., Jusung Engineering Co., Ltd., Soulbrain Co., Ltd., Wonik IPS Co., Ltd., and Koh Young Technology Co., Ltd.—have already entered or confirmed entry.

Yongin Mayor Lee Sang-il said, "When the advanced system semiconductor national industrial complex in Idong and Namsa-eup, where Samsung Electronics is investing 360 trillion won to build six Fabs, and the Yongin Semiconductor Cluster in Wonsam-myeon, where SK Hynix is investing 122 trillion won to build four Fabs, are completed, Yongin will have the world's largest semiconductor ecosystem as a single city." He added, "The fact that world-leading semiconductor equipment manufacturers such as ASML, Lam Research, and Tokyo Electron are entering Yongin one after another is because they are well aware of these changes in the landscape of the semiconductor industry."

Mayor Lee stressed, "The city will support Korea's semiconductor companies in maintaining a super gap by, among other things, shortening as much as possible the time required for permits for excellent companies coming to Yongin."

As of August, 21 general industrial complexes are being developed in Yongin. Of these, five—Yongin Techno Valley, Packaging, Tongsam, Nongseo, and Hancom—have been completed, eight—including Wonsam, Jigok, and the 2nd Yongin Techno Valley—have broken ground and are under construction, and six—including Jukneung and Tongsam-2—are undergoing project plan approval procedures. In addition, two, including the Yongin Semiconductor Cooperation Industrial Complex, have received industrial complex volume supply or are at the designation planning application stage.

A city official urged, "As semiconductor companies enter one after another, companies seeking to develop industrial complexes in the Cheoin-gu and Giheung-gu areas are actively moving, but since securing industrial complex volume supply is not easy, companies in need of sites should inquire with the city."

Meanwhile, six urban high-tech industrial complexes, including the Giheung ICT Valley, are being developed in Yongin, but of these, only the Giheung ICT Valley urban high-tech industrial complex has been completed.